Cryptocurrency markets have been on a rollercoaster ride, with Bitcoin breaking new all-time highs followed by a slow pullback in the altcoin market. However, there are reasons for optimism as the Federal Reserve signals an end to aggressive interest rate hikes, which historically has led to increased liquidity and a thriving crypto market.
The strength of the U.S. dollar, measured by the DXY (Dollar Index), is correlated with Bitcoin's performance. A weaker dollar is typically bullish for Bitcoin, and many experts are predicting the dollar will lose strength as interest rates decline, providing a boost to the broader cryptocurrency market.
While the altcoin market has largely followed Bitcoin's lead, facing similar slow pullbacks and consolidations, many altcoins like Solana have shown resilience. Altcoins are often more volatile than Bitcoin, but they also offer greater upside potential during bull markets.
The overall crypto market is still in accumulation, with "smart money" - big investors - buying when prices are low and market sentiment is bearish. This phase of consolidation often precedes a major rally, and the market is expected to gear up for its next bull run.
Source: https://allincrypto.com/cryptos-future-fed-cuts-dollar-weakness-and-tech-revolution/
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